Gov. Kathleen Blanco is demanding that the federal government give Louisiana more of the billions in royalties from oil and natural gas extracted off its coastlines.
BATON ROUGE, La. — Gov. Kathleen Blanco is demanding that the federal government give Louisiana more of the billions in royalties from oil and natural gas extracted off its coastlines, saying she'll block future leases without an increase in the state's share.
Blanco's warning, in a letter this week to the federal agency that manages offshore drilling, comes as the state is struggling to finance up to $40 billion in hurricane recovery and protection projects, and complaining that the federal government isn't helping enough.
The state wants half the royalties from oil and gas produced beyond its three-mile boundary -- a sum that could amount to more than $2 billion a year.
The state currently gets 27 percent of royalties produced between three miles and six miles offshore. For oil and gas production in the Gulf of Mexico from six miles offshore to international waters, Louisiana received just $32 million of the $5.7 billion the federal government brought in.
Under federal law, for lease sales to go through, governors in adjacent states must agree that the sales are consistent with their states' coastal management plans.
The U.S. secretary of the interior, who oversees the Minerals Management Service, could override Blanco if she attempts to block the next lease sale. But Sidney Coffee, Blanco's executive assistant for coastal activities, said the federal government probably will want to avoid the yearslong legal battle that could result.
The Minerals Management Service has not completed its review of Blanco's letter and has not issued a response, an agency spokesman said Wednesday.
The governor met with oil and gas industry officials last week.
Jeff Copeskey, of Louisiana Mid-Continent Oil and Gas Association, said Blanco's letter is meant to bring attention to the issue, and is not a slap at the industry.
Source: Associated Press
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